The Ministry of Economy and Finance (MEF)
has approved to take a US$600 million contingent loan that will be agreed between the Republic of Peru and the Inter-American Development Bank (IDB)
The rule states that the contingent loan can be used within a three-year period, which commences from the date of contract signing, and may be renewed for three additional years.
It also provides that, in each disbursement request, the amortization schedule —which can go on for as long as 20 years from the date of contract signing and may be modified in accordance with IDB policies— will be determined within the above-mentioned period.
The loan bears an interest rate based on three-month LIBOR, plus a margin to be set by the IDB in line with its interest rate policy.
Likewise, the loan shall carry an origination fee of 0.50% of the contingent loan amount, a renewal fee of 0.0% of the unpaid balance of said loan —which can be modified in case the period of usage is renewed for three additional years— and a fund immobilization fee of 0.38% a year of the balance to be disbursed from the contingent loan, in accordance with IDB policies.
Moreover, no supervision and inspection fee is required during the disbursement period of the loan, unless the IDB restores it.